“Microsoft rockets again!” – William Meyer
Only three companies in the history of mankind have managed to achieve this level of success. Saudi Aramco joined the club briefly, but has since fallen back.
Microsoft’s success is due to its CEO, Satya Nadella, a man of great vision and skill. Nadella took over from former CEO Steve Ballmer in 2014 and has now been promoted to chairman of the company’s board.
Microsoft has its fingers in lots of pies. It’s doing many things and it’s doing all of them well. The new Windows 11, the latest version of the flagship operating system, was launched last month. The new OS features an improved look and feel, multitasking and gaming capabilities, and an improved app store.
Microsoft’s growth is also assured by incredible opportunities for its cloud platform, Azure. In 2020 this business generated revenue of $48.36 billion and was one of the most profitable segments. Of course, this business is benefiting massively from the stay-at-home pandemic and a huge increase in demand for laptops and desktops.
Also, Microsoft is in a sweet spot in Washington DC. Its chief competitors are facing increased scrutiny and lawsuits by the Department of Justice and the Federal Trade Commission and a slew of antitrust bills. Microsoft seems mostly untouched. So what has the company got going for it that others don’t?
Markets investors favour, sustainable growth, positioning in the growing secular technology trend, best cloud platform, best stay-at-home stock, windows, gaming systems and political connections. What more could an investor want?
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